HOSPITAL COSTS

Te Awamutu Courier, Volume 66, Issue 5598, 29 March 1943, Page 3

HOSPITAL COSTS

CORRESPONDENCE READ COUNTY COUNCIL DISCUSSION A brisk discussion on the recent conference of local bodies within the area of the Waikato Hospital Board in connection with the mounting costs of hospital- maintenance and administration took place*at a meeting of the Piako County Council on Monday last (says the Te Aroha News). It was resolved that copies of the clerk’s letter to the Prime Minister and Mr Fraser’s reply be made available to all bodies which had been represented at the conference, and that the letters be also handed to the press.

LETTER TO PRIME MINISTER The letter forwarded to the Prime Minister was as follows: — “ At a recent conference of contributing local authorities in the Waikato Hospital Board’s area I was directed to again bring to your notice the ever-increasing demands made for hospital expenses.

EFFECT OF SOCIAL SECURITY “ Representatives considered that the introduction of social security legislation, far from relieving the burden of hospital costs on local authorities, had been largely instrumental in increasing these charges, both as to capital and maintenance costs. Individual authorities quoted figures to show that over the past five years hospital levies had been doubled and in some cases showed an even greater increase. RESOLUTIONS CARRIED “ The under-mentioned resolutions were carried by the delegates present:— “‘ (a) That this conference supports any steps being taken to move hospital taxation from ratepayers, and contends that funds required for hospital purposes should be obtained from income, salary, and wages.’ “ 1 (b) Pending the bringing into operation of the measures of relief outlined in the former resolution, that the State be requested to contribute such amounts as may be required each, while the contributions from the local authorities be fixed at the amounts paid for the year ended 31st March. 1939.’ A PREVIOUS OPINION

“When you were Minister of Health in 1939, a reply made to representations made by this Council showed that ‘ it is confidently expected that these payments (that is, 6s a day), and also those for maternity benefitswill afford a substantial measure of relief in the future amounts to be> contributed to the funds of hospital boards bv levy and subsidy. “ Since that time these expectations

have mot only not been realised, but substantial increases in the levies on local authorities have taken place. “ The representations and resolutions are now submitted for your favourable attention, so that hospital board estimates for the 19431944 may be prepared on a new basis. • “ A further resolution provided that a committee of five be set up to further the interests of this conference, and, failing a satisfactory reply to the representations made, that the Prime Minister be asked to meet the conference at Hamilton.” “ The members of this committee were Mr D. Johnson (Piako County Council), Mr F. O. R. Phillips (Otorohanga Town Board), Mr H. T. Morton (To Kuiti Borough Council), Mr N. V. Beatson (Kawhia County. Council). and Mr J. M. Stewart (Piako County Council.” PRIME MINISTER’S REPLY The reply received from the Prime Minister read as follows: “ I have received your letter of the 9th February incorporating texts oi resolutions passed at a conference of contributing local authorities in the Waikato Hospital Board’s area in connection with taxation for hospital finance. “The Government has already given this matter very carefyl consideration but it is regretted that'at the present time it is not possible for it to assume liability for any substantial increase in respect of hospital costs. TIME N£T OPPORTUNE. “ There is no surplus in the Social Security Fund against which any increase could be charged, and in view of the magnitude of our war programme and the necessity of meeting as much as possible of its cost from current revenue from all sources, 1 am sure it will be agreed that the present is not an opportune time to make sweeping changes in regard to the source of taxation for hospital purposes. ADMINISTRATION INVOLVED “It will also be appreciated that any change such as is contemplated in the resolutions referred to would have to be dealt with in conjunction with both the administration and control of the hospital system. “ That is, if the Government is to accept full responsibility for finance it must also assume responsibility for control or appoint some central controlling authority to administer a hospital system financed wholly by the Government.

“ This, coupled with the question of finance, raises a major problem which could not be adequately dealt with when all our energies and resources are mobilised and directed to the conduct of a supreme war effort, and the consideration of any solution to what is admittedly an involved and difficult matter will have to be postponed to a more opportune time.”